Venezuela Planning New 100,000-Bolivar Bills Worth Just $0.23

[Vishnu.Reang]

Citizens of Venezuela, your 100,000,000 Bolivars can buy you BTC0.019008. Buy now before your 100,000,000 Bolivars can only buy you BTC0.0019008.
Your government has lost control over the monetary system.

Yeah.... this is what hyperinflation can do to fiat currency. Central banks sometimes print banknotes without any control and this in turn destroys the value of the currency and makes it less valuable than toilet paper. Also, this is one of the reasons why Satoshi Nakamoto came up with Bitcoin in 2008. Hyperinflation is not unique to Venezuela. Previously many of the countries, such as Argentina, Russia and Zimbabwe used to suffer from it. Socialist countries, especially those in the Latin American region are more susceptible to hyperinflation, from what we have seen previously.

[1714847039]

1714847039

[1714847039]

1714847039

[1714847039]

1714847039

[1714847039]

1714847039

[1714847039]

1714847039

[1714847039]

1714847039

[TravelMug]

Citizens of Venezuela, your 100,000,000 Bolivars can buy you BTC0.019008. Buy now before your 100,000,000 Bolivars can only buy you BTC0.0019008.

Your government has lost control over the monetary system.

And they've really lost control of:



@Sithara007 - maybe the government provided some of the basic needs, like North Korea, but people need more, they have the rights to survived and make a living for themselves. It will be good if the government will provide the basics and keep the country from this hyperinflation, but they didn't and yet keeps printing money that's why the country is on a cluster fuck and continue to nose dive.

[sana54210]

Normally when it is not like Venezuelan economy I would say its not really that important to have bills that worth tiny amount of money. Look at Japan for example they spend tens of thousands of yen every single day for regular stuff but also earn hundreds of thousands of yen which means their money looks like it is worthless when you compare to dollars but in reality the life is a lot of yen there as well so it makes sense.

For example if 100k bolivar bills is 0.23 than rent should be 100 million, if it is not, that is the real problem not the bills. That is of course very hard to deal with and manage when you have such a hard difficulty with your economy its understandable to have these type of troubles.

[cabron]

The country is full of corrupt officials though so it's not very surprising that what happens in Zimbabwe can also happen to Venezuela. 

If the country is going to be using BTC after this inflation that they will be doing, I think they will one day be using digital Bolivar too. A digital currency that can be traced that will stop corrupt officials from being corrupt, I think the future will still be good for the country as long as they have oil.

[cryptomaniac_xxx]

The country is full of corrupt officials though so it's not very surprising that what happens in Zimbabwe can also happen to Venezuela. 

If the country is going to be using BTC after this inflation that they will be doing, I think they will one day be using digital Bolivar too. A digital currency that can be traced that will stop corrupt officials from being corrupt, I think the future will still be good for the country as long as they have oil.

I'm not really sure if you have heard about digital Bolivar or Petro, supposedly back up by oil and other others like Russia, and it turns out that this is not true. Maduro though try very hard to keep Petro, even pushing it for Venezuelans to used it, but it was really a failure and they used BTC instead, and that help them somewhat to survived in the worst situation.

[South Park]

Citizens of Venezuela, your 100,000,000 Bolivars can buy you BTC0.019008. Buy now before your 100,000,000 Bolivars can only buy you BTC0.0019008.

Your government has lost control over the monetary system.

Eventually they all do and at least during the last one hundred years this has been because governments think they can get away with anything since they are the ones that have the ability to print as much money as they want and as soon as they run into a problem instead of cutting expenses the first thing they is to print more money and think they are going to resolve everything that way, but what happens when the problem itself is that they have printed too much money? They print even more, as illogical as it sounds they think that is going to resolve the problem and they only make it worse.

[TravelMug]

And probably not just Venezuela:



https://twitter.com/alistairmilne/status/1319170878765211648

More countries are going to rely on BTC, and if those countries continue to print worthless bills sooner or later bitcoin might take over on those stricken nations, so don't be surprised in the near future of we heard that one in those list will go down hard.

[jaysabi]

What happens is a classic case of overcompensation, a good deal of governments on Latin America are corrupt and enrich those that are in power and their friends, obviously this is unfair and people eventually elect a populist president that says he will give them everything they want, unfortunately this goes against basic economic principles and instead of stopping a series of expropriations, money printing and debt follows destroying the economy on the process.

Giving unlimited handouts is a bad idea. Even oil rich nations such as Saudi Arabia and Qatar have realized this, and now they are slowly moving away from those policies. In case of Venezuela, when the oil prices were high the Hugo Chavez regime distributed all the budget surplus as handouts. The government never cared to setup a rainy day fund, so that they could use it in case the oil prices go down. In the end, the oil prices went down, and the government treasury was bone dry by then.

Without a doubt it is a bad idea but this is just more evidence the average person does not understand basic economic principles, it seems they think that just because governments are bigger than they are they can spend all the money they want and this is not true, governments still need to follow the same principles that any normal family would, they need to spend less than what they get on taxes and keep something for a rainy day as you say, but politicians are nothing more but a reflection of the society that elects them, so if the population does not understand this the politician most likely does not as well or at least does not care and that is how it begins the economic debacle of most countries.

Politicians constantly fail to lead. It's far easier to continue deficit spending than to balance the budget and make the hard decisions that need to be made in order to do so, especially since the only way to do this is to cut spending or raise taxes.  In the US, the budget is so unbalanced that it would take drastic spending cuts and drastic tax increases to balance the budget. The average person is generally too stupid to realize that failure to act now makes the situation worse in the future, and something will eventually give, and politicians are only interested in getting elected, so nobody is going to run on a platform of doing what needs to be done to get our finances in order.

[Sithara007]

I'm not really sure if you have heard about digital Bolivar or Petro, supposedly back up by oil and other others like Russia, and it turns out that this is not true. Maduro though try very hard to keep Petro, even pushing it for Venezuelans to used it, but it was really a failure and they used BTC instead, and that help them somewhat to survived in the worst situation.

Bitcoin is one of the better options, at least compared to the Petro shitcoin. But the big question is whether the regime can afford to purchase BTC? They have sold almost all of their gold reserves, and I don't think that they have anything valuable left in the state treasury. Petro is very similar to their worthless banknotes. They can mine as much as they want. But that is not the case with Bitcoin.

[milesfull]

Its better for tham to just develop their crypto and forget about cash

[Nellayar]

The more corrupt the country is, the more they need paper money. Corruption is simpler that way, including for government officials. The government flattens employees' salaries to maintain superficial control of inflation and allows for further negotiations, criminal activities. No punishment. Many government officials receive more than their own corrupt wages.

I agree to you! Only banks and corrupted officials are happy in printing fiat more. If there is a continuously printing of money, inflation will occur. The prices will goes up because the value of a product becomes more higher. It tends to create an economic recession when the country has high rate in inflation. This is not new already because we all know that even before, Venezuela is a country that has a lot of corrupt officials and printing of money is not new to them. In fact, if I remembered they already suffered from hyper inflation.

[btc_angela]

Its better for tham to just develop their crypto and forget about cash

Who are you referring to? The government or the people themselves? They have their own crypto already and it is called bitcoin (BTC), which in turn is the saviour in the worsening situation in their country. And it's obvious that there are people inside the country that don't like the current government of Maduro and even thinking of overthrowing him. Unfortunately, he is still clinging into the power despite seeing the obvious that the country is turning into one of the worst financial and economic disasters we've witnessed post world war. But bitcoin is here to stay with them through thick and thin.

[yhiaali3]

Indeed, it is very sad that things turn out so badly in Venezuela, the oil-rich country, the reason for sure is mismanagement. This idiot who issues orders to print more paper currency will lead to further economic decline in the country. Printing more papers that have no value is not the answer.

[Vishnu.Reang]

Indeed, it is very sad that things turn out so badly in Venezuela, the oil-rich country, the reason for sure is mismanagement. This idiot who issues orders to print more paper currency will lead to further economic decline in the country. Printing more papers that have no value is not the answer.

I am not sure whether the "idiot" had any other option available with him. Government servants and the armed forces needs to be paid and the only thing they can do is to print more banknotes (even if they are completely worthless). Anyway, this is a lesson to all the governments out there, especially in the Latin American region. When you have surplus money, you need to save at least a part of it.

[matchi2011]

Its better for tham to just develop their crypto and forget about cash

Who are you referring to? The government or the people themselves? They have their own crypto already and it is called bitcoin (BTC), which in turn is the saviour in the worsening situation in their country. And it's obvious that there are people inside the country that don't like the current government of Maduro and even thinking of overthrowing him. Unfortunately, he is still clinging into the power despite seeing the obvious that the country is turning into one of the worst financial and economic disasters we've witnessed post world war. But bitcoin is here to stay with them through thick and thin.

Yeah right, bitcoin is helping this country more on the people side, having a non value paper print fiat really hurt the entire country, but it's good thing that they acquired bitcoin and allow it being used around.

Without any changes from this current government, the country will continue to suffer from this problem, they don't have any options as the government still solid in ruling them, not unless people power will take place and restart this country.

[samcrypto]

Indeed, it is very sad that things turn out so badly in Venezuela, the oil-rich country, the reason for sure is mismanagement. This idiot who issues orders to print more paper currency will lead to further economic decline in the country. Printing more papers that have no value is not the answer.

Economist must step up so they can help the country survive considering the Oil-Rich country, they still have the chance to survive but printing more money is indeed not a solution. I'm just thinking, they ended up like this so badly and I think some country are also behind on this one maybe putting too much sanctions and pressure to the current administration is too much, a lot of people are suffering because of this and instead of helping them some country still don't want to. I know their government is corrupt of course, People in Venezuela just need some help from a real people so they can finally win against their corrupt government.

[bryant.coleman]

Economist must step up so they can help the country survive considering the Oil-Rich country, they still have the chance to survive but printing more money is indeed not a solution. I'm just thinking, they ended up like this so badly and I think some country are also behind on this one maybe putting too much sanctions and pressure to the current administration is too much, a lot of people are suffering because of this and instead of helping them some country still don't want to. I know their government is corrupt of course, People in Venezuela just need some help from a real people so they can finally win against their corrupt government.

You can't blame the sanctions for their current state. Venezuela was in a shitty state even before the sanctions were imposed. The currency was worth less than the paper on which it was printed and even essential items were going out of stock in the supermarkets. The sanctions were triggered due to irregularities and vote rigging during the 2018 Venezuelan presidential election, which Nicolás Maduro claims to have won.

[iv4n]

Indeed, it is very sad that things turn out so badly in Venezuela, the oil-rich country, the reason for sure is mismanagement. This idiot who issues orders to print more paper currency will lead to further economic decline in the country. Printing more papers that have no value is not the answer.

I am not sure whether the "idiot" had any other option available with him. Government servants and the armed forces needs to be paid and the only thing they can do is to print more banknotes (even if they are completely worthless). Anyway, this is a lesson to all the governments out there, especially in the Latin American region. When you have surplus money, you need to save at least a part of it.

When you have a surplus money you need to invest it, in that money will work for you, not against you (inflation). Buying gold, investing in development of some products, in the last 10 years investing in crypto... there're many options what country can do with extra money! Here we need to take a look on the bigger picture, sometimes you can't breathe from bullies around, and Venezuela have some problems with their gold in the UK (they are saying billions in gold is locked), they say it's because Maduro, but who knows what's really happening on the global stage! As I always say, I am aware that innocents are being hurt, and innocent suffer mostly, which is terrible thing, while warlords and their families, close people, enjoy in life full of everything! It's not the first time we see this, and for sure it's not the last time!

[Vishnu.Reang]

When you have a surplus money you need to invest it, in that money will work for you, not against you (inflation). Buying gold, investing in development of some products, in the last 10 years investing in crypto... there're many options what country can do with extra money! Here we need to take a look on the bigger picture, sometimes you can't breathe from bullies around, and Venezuela have some problems with their gold in the UK (they are saying billions in gold is locked), they say it's because Maduro, but who knows what's really happening on the global stage! As I always say, I am aware that innocents are being hurt, and innocent suffer mostly, which is terrible thing, while warlords and their families, close people, enjoy in life full of everything! It's not the first time we see this, and for sure it's not the last time!

The regime sold all the gold bars they could find in the treasury. When that was finished, they realized that the majority of the Venezuelan gold reserves are stored in some vault in London (because the previous government thought that storing that in Venezuela is very risky). Now Maduro wants to return this gold to Venezuela. British government rejected the request, saying that they don't consider Maduro as the rightful president of Venezuela.

[STT]

23 cents for a 1 cent or less cost is an attractive prospect is the simplest take.

The parliamentary elected top government official has the control of the countries gold, its being decided via the courts is last I heard.    I can only hope the gold price continues to rise and it becomes increasingly attractive to return the power to the people so that the nation can regain control of its capital and trade to the peoples benefit.     At present the country is weak and proxy for illegal activity in a path well trodden over the years.

The country is full of corrupt officials

The military is running drugs for the colombian cartels apparently, they are quite happy in their positions though the soldiers may not be those in control for now are.    Restoring proper power to the country would lose this valuable revenue source for some so theres an active interest in maintaining weakness and disarray across the country.